It had been a good year for retailers who had bought into shares qouted in the Kuala Lumpur Stock Exchange at depressed prices late 2005 and early 2006. While the expected Chinese New Year rally did not materialize in January/February, the share prices of low liners had slowly appreciated until May that year, before the expected ‘British fund managers sold shares in May and go away for holidays’ phenomenon hit home. Stock markets across the world were also sidelined and quiet while hundreds of millions watch the World Cup Soccer fest in the month of June.
During that month, following the Yi’s advice, one bought back GT shares sold in May. [Refer to the case study entries on ‘Do not chase after the horse’] There was a big rally for low liners early July and in line with my yearly chart, one sold all my shares by the middle of that month. The low liners drifted lower and by August their prices were low enough to reconsider buying into.
After doing some homework, one found a particular share that had a recovery theme, and upon asking, the Yi answered my question with Hexagram 51 Zhen / The Arousing (Shock, Thunder). As blogged last year, from experience, Zhen also indicated oncoming thunderstorms and major earthquakes. (Heavy thunderstorms did hit Malaysia in December flooding several states, and major earthquakes if you have not noticed still continue to shake various countries. An 8.2 Richter scale earthquake struck in the Pacific Ocean off Japan a few days ago. This proves time and time again that the Yi is indeed profound.)
In line with the Yi’s advice, one accumulated the particular share at depressed prices during the months of August, September, and October. Its share price had more than doubled when one sold them at the end of October. All other share investments were sold by early November because of my expectations of a forthcoming fall in low liners. [There was an earlier entry on that.]
The months of November and December had been good for the big boys – fund managers and institutions – because prices of blue chips and various plantation stocks soared what with strong buying from foreign funds. But the retailers did not make much since prices of low liners drifted. One had remarked to a few friends that while I was placing a large part of the sale proceeds into fixed or term deposits in November; many people were seen uplifting them probably to buy into stocks and shares as the stock market was hot.
One understands that many retailers were ‘burned’ – suffered huge losses – during the December 19 debacle when Thailand announced capital controls and her stock market fell 15%. The retailers had panic sold their share investments fearing a repeat of the 1997 Asian financial meltdown. Some of my friends and relatives who were holding cash like me at the time bought back some shares instead. Meanwhile I was preparing to fly to Bali with my family for a well earned holiday that morning and was oblivious to the event. One had bought some finance stocks recently but the Yi has mentioned that there was nothing to shout about; therefore no entries had been made.
Perhaps regular readers can discern a major difference between the awareness of Yi guided investors and those who do not study or follow the Book of Changes.
2007 could be a good year for the KLSE and for most Malaysian shares investors. There could be big ‘angpows’ (traditional CNY gifts of red packets filled with money) for everyone after Chinese New Year!